HealthStream, Inc. (NASDAQ:HSTM) Files An 8-K Entry into a Material Definitive Agreement
Item1.01
| Entry into a Material Definitive Agreement. |
On April3, 2017, HealthStream, Inc., a Tennessee corporation (the
Company), and Capitol View Joint Venture, a Tennessee general
partnership (the Landlord), entered into a Lease Agreement (the
Lease), to which the Company has agreed to lease approximately
65,000 square feet in a building to be constructed in Nashville,
Tennessee (the Leased Property). The Company intends that the
Leased Property will serve as its corporate headquarters
beginning in 2019.
The Companys rental obligations consist of base rent of
approximately $1 million in the first year of the Lease,
including a rent abatement for the first six (6)months of the
lease term, with base rent increasing annually by 2.0%
thereafter. In addition to base rent, the Company will pay
additional rent consisting of, among other things, operating
expenses, leasehold improvements and parking accommodations.
The Lease has an initial term of ten (10)years and six (6)months
and is scheduled to commence in early 2019. In addition, the
Companys existing lease for its current corporate headquarters
will expire at the end of April 2019. Prior to taking possession
of the Leased Property, the Company may terminate the Lease if
the Landlord has failed to satisfy certain construction
milestones. In addition, the Company may extend the term of the
Lease by up to two (2)consecutive five-year terms upon advance
notice. The base rent to be paid during the renewal terms, if
any, will be determined in accordance with the Lease.
The Lease contains customary default provisions allowing the
Landlord to terminate the Lease if the Company fails to remedy a
breach of any of its obligations within specified time periods or
upon the bankruptcy or insolvency of the Company. Upon
termination of the Lease under these circumstances, the Landlord
may collect from the Company the difference between the remaining
rent payments through the expiration of the Lease and any rental
income from reletting the Leased Property over such time period.
| Item2.03. |
Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. |
The information under Item1.01 is incorporated herein by
reference.
About HealthStream, Inc. (NASDAQ:HSTM)
HealthStream, Inc. provides workforce, patient experience and provider solutions for healthcare organizations. Delivered primarily as Software-as-a-Service (SaaS), the Company’s solutions focus on challenges facing the healthcare workforce and healthcare organizations, including the need to manage, retain, engage and develop healthcare workforce talent; meet compliance requirements; manage ongoing medical staff credentialing and privileging processes, and deliver patient experiences of care in healthcare organizations. The Company operates in three segments: HealthStream Workforce Solutions, HealthStream Patient Experience Solutions and HealthStream Provider Solutions. Its products and services are organized into three segments: Workforce Solutions, Patient Experience Solutions, and Provider Solutions. Its provider solutions include MSO for the Web (MSOW) and Privilege Content and Criteria Builder (PCCB). HealthStream, Inc. (NASDAQ:HSTM) Recent Trading Information
HealthStream, Inc. (NASDAQ:HSTM) closed its last trading session down -0.78 at 23.45 with 124,378 shares trading hands.
